The Impact of the Hamas-Israel Conflict on the Cryptocurrency Market

Hamas-Israel & Cryptocurrency Market

How did the Hamas-Israel conflict impact the crypto market? Hamas is reportedly using cryptocurrencies for fundraising.

 

Hamas’ War Chest Comes from the Crypto Market?

Hamas has been using Bitcoin as a means to collect donations due to international sanctions and strict financial scrutiny weakening traditional financial channels. It’s estimated that Hamas has raised around $55 million in cryptocurrencies over the past two years. According to the Israeli Wall Street Journal (WSJ), Hamas is believed to have used cryptocurrencies, including Bitcoin, to raise funds for attacks on Israel.

Furthermore, according to BitOK, a cryptocurrency analysis firm based in Israel, Hamas is estimated to have received over $41 million in cryptocurrencies into their crypto accounts over the past eight months. Other armed groups, including Hamas, have also reportedly raised significant funds through cryptocurrency accounts over the past year, as reported by the WSJ. Additionally, blockchain analysis firm Elliptic has found that specific PIJ (Palestinian Islamic Jihad) associated addresses received up to $93 million worth of cryptocurrencies.

 

Hamas-Israel War, Crypto Industry in Israel

The conflict has also affected the crypto industry in Israel.

Alon Muroch, co-founder of the decentralized Ethereum staking infrastructure service platform SSV Network, was called up for reserve duty in the Israeli military. SSV Network, based in Israel, continues to build and provide top-tier DeFi infrastructure, as confirmed by BitOK, a cryptocurrency analysis firm.

I got drafted, situation on the ground is significantly worse than described. Massacre is the only word that comes to mind. 90% civilians (families) We are turning the tables, it won’t be short nor pretty.”

In response to these developments, Israel has taken action against Hamas. Israeli authorities froze cryptocurrency accounts suspected of being associated with Palestinian armed group Hamas and transferred the seized funds to the national treasury. This action was carried out in close cooperation with Binance, which actively collaborates with various governments and law enforcement agencies worldwide, ensuring strong regulatory compliance and anti-money laundering (AML) measures to maintain a secure trading environment.

 

Islamic Coins

islamic Coin
islamic Coin

The conflict has also had an impact on Islamic coins. Some cryptocurrency companies have established funds to support refugees affected by the Israel conflict.

Certainly, here’s the provided information in a more extended form:

“ISLM, the Shariah-compliant cryptocurrency, recently made an important announcement regarding a technical issue that had affected wallet balances, causing them to display as zero. The organization acknowledges that some users encountered a problem with their wallet balances on the Haqq mainnet. This issue was linked to a connectivity problem with the Remote Procedure Call (RPC) node, which temporarily rendered the wallets dysfunctional.

ISLM is actively addressing this issue to ensure that such incidents do not recur. It’s crucial to emphasize that the Haqq wallet is a non-custodial wallet, which means that only the user has access to their assets. Even when the wallet interface shows a balance of zero, users can rest assured that their assets are securely stored on the blockchain.

For users concerned about their asset balance, ISLM recommends checking the balance through the explorer. The Islamic team is dedicated to enhancing the security of the platform and plans to release an updated version in the near future, further bolstering the reliability and functionality of the Haqq wallet.”

Paul Grewal(Coinbase CTO) Said:

“What’s happened in and to Israel is evil.  No funds should EVER be used to support Hamas or any other organization responsible–  whether those funds are in the form of fiat currency, gold, crypto or whatever.” 

“That’s also why we need to sensible crypto legislation passed here in the United States without further delay.  We need this industry flourishing in nations committed to the rule of law, not driven to places where human rights and public safety mean much less.”

 

Crypto Aid Israel

According to CoinDesk, companies like Fireblocks, MarketAcross, CryptoJungle, and the Israel Blockchain Association have set up a fund called ‘Crypto Aid Israel‘ and are collecting donations in BTC, Ethereum (ETH), USDT, USDC, and other cryptocurrencies.

 

View other articles

(Content created on Web3 Builders is copyrighted by Web3 Builders. Please credit the source when quoting. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.)

Leave a Comment